PGRX 2013 Review and 2014 Outlook Business Wire DENVER -- December 17, 2013 Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the “Company”) announced the signing of an agreement that enables the Company to extinguish its senior secured debt and issues the following statement regarding recent developments. Prospect Global has entered into definitive documentation that provides for the extinguishment of all the Company’s senior secured obligations, totaling approximately $148 million, for $25 million, or at approximately 17 cents on the dollar. Reaching agreement on a buyout of the Company’s debt culminates a year of significant achievements for Prospect Global and its Holbrook Project. The extinguishment of Prospect Global’s large debt burden will significantly strengthen the Company’s balance sheet and provide PGRX with more flexibility and options for raising the financing required to complete a definitive feasibility study in 2014 and begin construction in 2015. A recap of the major project developments and progress made towards production during 2013. Regulatory Approvals The Company significantly advanced the permitting for its Holbrook Project in 2013. In February 2013, the Company submitted its application for an air permit with the Arizona Department of Environmental Quality (“ADEQ”) and submitted its application to convert its state mineral exploration permits to mineral leases with the Arizona State Land Department (“ASLD”). A major component of the submission to the ASLD was a Mineral Development Report (“MDR”) covering a geologic assessment, economic feasibility, environmental assessment, mine operation plans, and reclamation and closure plans. In September 2013, the Company received an air permit to construct and operate a 2.2 million ton per annum mine and processing plant. During the course of 2013, the Company and its representatives have had numerous discussions with the ASLD as they progressed the Company’s application for a mineral lease and expect to receive a mineral lease in the first half of 2014 Engineering Prospect Global completed a major engineering milestone in July of 2013 when a team of internationally-known and respected engineering and consulting firms completed a pre-feasibility study for the Holbrook Project. Highlights included *1.42 million ton per year operation *$825 million estimated capital cost *$1.4 billion NPV @ 8% and a 27% after-tax IRR *33 million tons of MOP production over the initial 26 year mine life Drilling The Company completed a 17 hole, primarily infill drilling, drilling program in October 2013. The drilling program was designed to maximize the potential conversion of inferred resources to the measured and indicated categories in order to support the completion of a definitive feasibility study. In addition, the Company completed the sampling and assaying of 6 holes from its phase III drilling program, thereby adding in total 23 holes to the 22 holes the Company had previously drilled which formed the basis for previous resource estimates. Resources An updated geologic model and resource estimate will be completed in 2014 on which the definitive feasibility study will be predicated. Offtake and Strategic Partnership Talks The Company continues to advance talks on both offtake and strategic investment with a number of strategic and financial companies. Interest in Prospect Global’s low-risk, low-cost potash project remains strong and management is working with various potential partners with a view to maximize value for shareholders. Outlook for 2014 The Company believes it is well positioned to raise the financing to repurchase its debt in the first quarter of 2014, receive its mineral lease from the ASLD by mid-year and complete a definitive feasibility study for its Holbrook Project by the end of 2014. Significant work is underway in both regards. The completion of these three major milestones in 2014 will position the Company to begin construction in 2015. Regarding Forward-Looking Statements With the exception of historical matters, the matters discussed in this press release include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include statements regarding current and future classification of Prospect Global’s potash resources, development of its potash resources and potash mining facility and the Pre-Feasibility Study. Factors that could cause actual results to differ materially from projections or estimates include, among others, potash prices, economic and market conditions, and the additional risks described in Prospect Global's filings with the SEC, including Prospect Global's Annual Report on Form 10-K/A for the year ended March 31, 2013. Most of these factors are beyond Prospect Global's ability to predict or control. The forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, Prospect Global does not assume any obligation to update any forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements. About Prospect Global Resources Inc. Prospect Global Resources Inc. is a Denver-based company engaged in the exploration and development of a potash mine located in the Holbrook Basin of eastern Arizona. Prospect Global’s stock is traded on the NASDAQ Capital Market under the ticker symbol PGRX. Additional details about Prospect Global Resources Inc. can be viewed at the Company’s website, www.prospectgri.com. Contact: The Rose Group Elana Weiss, 310-280-3710
PGRX 2013 Review and 2014 Outlook
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